Blackrock to sue VW
- September 20, 2016
- Posted by: Simon Wait
- Category: Industry News
The BBC reports that asset management firm Blackrock and a group of institutional shareholders are set to sue Volkswagen for £1.7bn over ‘dieselgate’.
The report claims investors, including sovereign wealth funds and pension funds, are expected to file a complaint in a court in Braunschweig, Germany claiming that VW ‘failed to disclose its use of software defeat devices on diesel cars in a timely way’.
The shareholder claims relate to the drop in Volkswagen’s share price after the scandal broke. Between September and October 2015, Volkswagen AG preference shares lost about 45% of their value, and are still about 28% down.
Blackrock is one of the world’s largest asset managers. Norway’s Oil Fund, which is the world’s largest sovereign wealth fund, the California State Teachers’ Retirement System, the Greater Manchester Pension Fund, and State Street are also part of the action against VW.